UPDATE: BMO Capital Starts ServiceNow (NOW) at Market Perform
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(Updated - September 20, 2016 8:51 AM EDT)
BMO Capital initiated coverage on ServiceNow (NYSE: NOW) with a Market Perform rating and a price target of $85. Analyst Keith Bachman sees challenges.
"We believe that ServiceNow will have challenges sustaining growth in the IT service management (ITSM) market due to the small market size and increasing competition. In contrast, we believe ServiceNow will generate solid growth in new product areas and leverage its existing customer relationships to grow revenue per customer. However, since we think ITSM likely represents around 75% of subscription revenues, we choose to sit on the sidelines," said the analyst.
Shares of ServiceNow closed at $75.99 yesterday.
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